Early activity saw prices work higher in a continuation of yesterday’s recovery. This led May’20 to a morning high of 15.14 against a backdrop of limited selling, placing Sugar back at the top of the CRB sector once more. The commencement of USDBRL trading at 4.37 led to a topping process that set prices back towards unchanged levels over the next couple of hours, but the selling was all rather weak and by mid-afternoon we had found some spec interest that had us working upward once more. Despite the continuing weakness of the BRL May’20 pushed on to new session highs and reach 15.20 before stalling in the face of some weightier selling. This fell a touch short of the recent 15.28 high but still represents a decent performance after the losses last Thursday/Friday, emphasising the desire of specs to continuing playing from the long side. A mixed closing period saw values settle away from the high at 15.08 but still well placed to test recent highs in the near term.

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Jon Whybrow

Jon joined CZ in 1991, working in the Treasury department before moving to join the derivatives team in 1994. Over 30 years Jon has built up significant experience across derivatives markets and products, particularly sugar, and is now Head of Flow derivatives providing market execution services for CZ’s global client base. He is responsible for the market commentaries which are published each day on CZ app.

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